Sartorius Reviews Fiscal 2013 Results

05-Mar-2014 - Germany

The Sartorius Group closed fiscal 2013 with significant gains in sales revenue and earnings. At the annual press conference in Goettingen, Group CEO Dr. Joachim Kreuzburg emphasized that the company not only achieved all financial targets, but also has successfully moved forward with its Sartorius 2020 growth initiative: "In the bioprocess Solutions Division, we further expanded our portfolio for the biopharma market by bolt-on acquisitions and own product development. In the Lab Products & Services Division, we launched a number of promising new product series and at the same time we phased out a few non-strategic product lines. By this focusing of our offering we sharpen our positioning as a premium supplier to lab customers."

Sartorius expects significant profitable growth for the current year as well. Management projects sales to grow approximately 8% to 10% in constant currencies and the company's underlying EBITDA margin to further increase. Based on its strong growth prospects, Sartorius is planning to make considerable investments in the expansion of its global capacities, with a focus on the Group’s headquarters in Göttingen, Germany. "We are launching a multi-year investment program to extend our headquarters, and are planning to unify our two plants at a single site and to build a central Sartorius Campus." This program includes new instrument manufacturing facilities, development and demonstration labs for new products, as well as areas for internal and external teams to work on interdisciplinary projects. "We are expanding significantly and, at the same time, are striving to create an open and dynamic working environment for our employees, customers and business partners," said Kreuzburg. Framework planning for these facilities was finalized and initial construction work has already begun.

Dynamic growth of sales revenue and order intake

In fiscal 2013, Sartorius generated consolidated sales revenue of 887.3 million euros, up from 845.7 million euros a year ago. This equates to an increase in constant currencies (cc) of 7.7% (reported: 4.9%). The gain in Group order intake was also strong, climbing 8.0% (reported: 5.2%) to 912.3 million euros.

Accounting for more than half of consolidated revenue, the Bioprocess Solutions Division continued on track: It posted strong sales growth of 11.9% (reported: 9.2%) to 517.8 million euros and a surge in order intake by 17.4% (reported: 14.6%) to 549.7 million euros. This excellent expansion was driven by all product segments. Cell culture media business acquired in December 2012 contributed approximately two percentage points to the division's sales growth.

Sales revenue for the Lab Products & Services Division rose 2.4% (reported: -0.5%) to 267.4 million euros. Without the phase-out of a few non-strategic product lines, this figure would have been around two percentage points higher. The soft market environment in Asia at the start of the year had a dampening effect on business, which slightly picked up, however, as the year progressed. Order intake was at 263.6 million euros relative to 282.0 million euros a year earlier (constant currencies [cc] -3.7%; reported: -6.5%); the portfolio impact on this figure was around minus three percentage points.

After a difficult first quarter, Industrial Weighing, the smallest Group division, showed positive development during the further course of the year. For the full year, its sales revenue rose 2.4% (reported: -0.7%) to 102.0 million euros. At 99.0 million euros, order intake for Industrial Weighing was slightly below the prior-year figure (cc: -3.1%; reported: -6.0%).

Regionally, Sartorius achieved the highest sales growth in Asia, up 10.3%. Business in this region was driven primarily by high demand for single-use products and equipment used in biopharmaceutical production. In the European market, which accounts for around half of Sartorius' business, sales revenue rose 8.5%. All divisions reported gains in this area. Seen against the background of strong growth in the previous year, sales revenue for the North American region grew more moderately, gaining 2.6%. (All regional figures are given in constant currencies.)

Further increase in consolidated profit

Again in fiscal 2013, Sartorius further expanded its profitability. Its underlying EBITDA rose overproportionally by 7.1% to 172.6 million euros, despite negative currency effects. The corresponding earnings margin climbed from 19.0% to 19.5%.

Mainly driven by economies of scale, earnings contributed by the Bioprocess Solutions Division surged 15.6% to 119.3 million euros, up from 103.2 million euros a year earlier. Its corresponding margin rose from 21.8% to 23.0%. The Lab Products & Services Division posted an underlying EBITDA of
42.9 million euros relative to 45.9 million euros a year ago and a margin of 16.0%, compared with 17.1% in the previous year. Underlying EBITDA for the Industrial Weighing Division was at 10.4 million euros relative to 11.9 million euros a year ago; this corresponds to a margin of 10.1% versus 11.6% in the year before.

Relevant net Profit for the Group was 64.8 million euros, up 2.8% year over year. Its respective earnings per ordinary share amount to 3.79 euros, up from 3.69 euros in 2012, and per preference share, 3.81 euros, up from 3.71 euros in the previous year.

Net operating cash flow nearly doubled from 53.2 million euros in 2012 to 103.3 million euros in 2013. The ratio of net debt to underlying EBITDA was at 2.0 (previous year: 1.9) and, despite the completion of two acquisitions, thus continues to remain at a comfortable level. The Group's equity ratio rose to 38.3%, after 37.8% a year ago.

Research and development expenditures rose

In fiscal 2013, Sartorius invested 53.8 million euros in research and development, 9.7% more than in the previous year. Its ratio of R&D costs to sales revenue was accordingly at 6.1%, slightly more than the prior-year ratio of 5.8%.

Investments in capacity expansions

Whereas Sartorius substantially invested in the expansion of its capacity levels in 2012, it executed on a number of relatively small- to medium-size investment projects in the fiscal year ended. As a result, investments were at 62.9 million euros, down from 74.2 million euros in the year before; the Group's investment ratio was at 7.1%.

Number of employees increased to over 6,000

At the end of the reporting year, the Sartorius Grouop employed 6,058 people, 567 or 10.3% more than a year earlier. This headcount number includes around 200 persons from TAP Biosystems Group plc acquired in December 2013.

Dividends set to rise by around 6%

The Executive Board and the Supervisory Board will submit a proposal to the Annual Shareholders' Meeting on April 10, 2014, to increase dividends to 1.02 euros per preference share (previous year: 0.96 euro) and 1.00 euro per ordinary share (previous year: 0.94 euro). If approved, the total amount disbursed under this proposal would thus rise 6.3% to 17.2 million euros from 16.2 million euros paid out in 2012.

Positive outlook for fiscal 2014

For the current year, Sartorius expects sales to grow approximately 8% to 10% in constant currencies. Its underlying EBITDA margin is projected to further increase and reach about 20.0% relative to 19.5% a year earlier.

Based on its strong growth prospects, Sartorius is additionally planning to invest around 8% to 10% of sales in expansion of capacity and in growth projects.

In view of the three divisions, company management anticipates that sales for Bioprocess Solutions will grow approximately 12% to 15%. Recent acquisitions are expected to contribute approximately seven percentage points to the division's revenue growth. With respect to profitability, Bioprocess Solutions' underlying EBITDA margin is forecasted to rise to about 23.5%.

For the Lab Products & Services Division, Sartorius expects that sales will expand at approximately 1% to 4%. This forecast includes a two-percentage point dilution of sales due to adjustment of its product portfolio. The lab division's underlying EBITDA margin is expected to rise to around 16.5%.

The Industrial Weighing Division projects sales revenue to increase by approximately 1% to 4% and its underlying EBITDA margin to reach 10.5%.

Other news from the department business & finance

These products might interest you

MX-scales, MR-scales, MA-scales, LA-scales New

MX-scales, MR-scales, MA-scales, LA-scales by Mettler-Toledo

New generation of laboratory balances for a wide range of applications

Excellent performance, durable instruments and simple operation

laboratory balances
VICI DBS ZeroAir

VICI DBS ZeroAir by VICI

Generate up to 30 L/min of analytically pure air yourself – for stable baseline GC-FID applications

Increase the sensitivity of your GC-FID analysis while reducing costs

zero air generators
LabBox

LabBox by HiTec Zang

Automation made easy for every laboratory

Discover the all-in-one automation solution for greater efficiency

laboratory automation systems
HYDROTHERM

HYDROTHERM by C. Gerhardt

Efficiency in food analysis: Safe and precise total fat determination made easy

Fully automatic acid hydrolysis in 90 minutes - validated for continuous operation

acid hydrolysis systems
Mars 6

Mars 6 by CEM

Everything under Control - with This Intelligent Microwave Digestion System

High Sample Throughput with Just One Click

microwave digestion systems
PG 85

PG 85 by Miele

Powerful, safe, flexible: Compact lab washers with intelligent wash system

Developed for the reprocessing of laboratory glassware for analytical experiments

laboratory washers
Stainless steel reactors for high pressures and vacuum

Stainless steel reactors for high pressures and vacuum by JUCHHEIM Laborgeräte

Customized stainless steel reactors - configured for your needs

Perfect for extraction, digestion, hydrolysis, hydrogenation or synthesis

APU sim

APU sim by Analytik Jena

APU sim Automatic Preparation Unit

APU sim The Clever Sample Preparation System According to Column Method

sample preparation systems
CrystalBreeder

CrystalBreeder by Technobis

CrystalBreeder: the next generation multi-reactor crystallization platform

Enhance your early stage solid state screening. New: controlled evaporation & vapor diffusion modes

SmartCheck

SmartCheck by Mettler-Toledo

Check Pipette Dosing Accuracy - Lightning Fast in Under a Minute

Detect dosing errors before it gets expensive

pipette calibration devices
Automated Fusion Equipment

Automated Fusion Equipment by XRF Scientific

Automated Fusion Equipment

Sample Preparation at Highest Level

fusion equipment
Catalogue: Labware made of precious metals

Catalogue: Labware made of precious metals by XRF Scientific

Labware made of precious metals

For sample preparation at highest level

lab equipment
BIOS ANALYTIQUE - Soluciones de Renting y Leasing para laboratorios

BIOS ANALYTIQUE - Soluciones de Renting y Leasing para laboratorios by Bios Analytique

Specialists in the rental and leasing of scientific equipment for laboratories throughout Europe

Whether you have an unexpected requirement or limited budget, we have the perfect solution for you

lab equipment
OHAUS Laboratory equipment

OHAUS Laboratory equipment by Ohaus

Do More with OHAUS Laboratory Equipment

Do Not Limit Yourself to Just Measurement! Discover Ingenious Portfolio

lab equipment
Automatische XPR-Waagen

Automatische XPR-Waagen by Mettler-Toledo

Production of standards, samples and concentrations - fast and reliable

Automate the weighing processes in your laboratory - ideal also for sample prep at chromatography

laboratory balances
OHS Series: Overhead Stirrers

OHS Series: Overhead Stirrers by Velp Scientifica

State-of-the-art stirring power for a wide range of applications

Reliable overhead stirrers for different requirements in terms of viscosity and volume

stirrers
Systec H-Series

Systec H-Series by Systec

Safe, reproducible and validatable sterilization of liquids, solids and waste

Autoclaves with 65-1580 liters usable space, flexibly expandable for various applications

laboratory autoclaves
FlowSyn and FlowSyn Maxi

FlowSyn and FlowSyn Maxi by Uniqsis

Continuous Flow Chemistry Systems for reaction optimisation and scale up

Perform reactions up to 300°C and 100 bar from 0.1 - 100 ml /minute

flow reactors
P-50

P-50 by Mettler-Toledo

Fast and Error-free Documentation

The all-in-one printing solution

thermal printers
Loading...

More news from our other portals

So close that even
molecules turn red...

See the theme worlds for related content

Topic world Weighing

Precise weighing is critical in laboratory and industrial environments. From accurate dosing of chemicals for research experiments to mass production of products, precise weight determination is often the first and most critical step. Modern balances and weighing instruments are sophisticated, offer impressive precision and are resilient to external influences such as temperature and humidity.

10+ products
40+ whitepaper
5+ brochures
View topic world
Topic world Weighing

Topic world Weighing

Precise weighing is critical in laboratory and industrial environments. From accurate dosing of chemicals for research experiments to mass production of products, precise weight determination is often the first and most critical step. Modern balances and weighing instruments are sophisticated, offer impressive precision and are resilient to external influences such as temperature and humidity.

10+ products
40+ whitepaper
5+ brochures